Warren Buffett is the world's most famous long-term investor but forex traders can learn from him too.
With Buffett delivered earnings yesterday and the Wall Street Journal got some lessons from a friend of the 84-year-old Oracle.
Here are 3 that will make you a better forex trader.
1)
"One of the hardest things for most investors is to sit by and watch other people make money," says Howard Marks, co-chairman of Los Angeles-based Oaktree Capital Management, who has known Mr. Buffett for many years. "But that doesn't bother Warren at all when the opportunities are outside his sphere."
FOMO, the fear of missing out, is a pitfall that isn't discussed often enough. In the information age and with global electronic trading, there are opportunities everywhere. In hindsight, a million dollars a week is a cinch; let it go or risk chasing trades better left alone.
2)
"Warren has the ability to figure out which things are important in a whole narrative and to ignore everything else," Mr. Marks says.
This is an art, but it comes with practice. There are no rules because sometimes a certain theme or inter-related market will matter and other times it won't. Greece is a perfect example at the moment because sometimes it matters, sometimes it doesn't. The irrevocable themes in forex are growth and inflation. Let those be your compass.
3)
"[Buffett is] extraordinarily good at knowing what he's good at and what he's not, and staying away from the latter."
Don't fall in love with the flavour of the week. Even if there isn't anything you're particularly good at, decide what you want to be and stick with it. The underlying message here is simple -- stay disciplined.
